Apple Ramps Up Production Of iPhone 5 For Sept. Launch: Analyst

Apple Ramps Up Production Of iPhone 5 For Sept. Launch: Analyst
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Apple Ramps Up Production Of iPhone 5 For Sept. Launch: Analyst

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Apple Inc. (NASDAQ:AAPL) is intensifying its production for iPhone 5 and iPad Mini for its September launching, according to Charles Park, analyst at Mizuho Securities  Ltd. Technology, who visited a number of companies in Taiwan. Park observed the supply of in-cell display is holding up the production process.

According to the report issued by Park, Major display producers, such as Japan Display and LG Display, started shipping supplies to manufacturers and it would help Apple Inc. (NASDAQ:AAPL) to start its production process. Mizuho Securities expects Apple to ship limited supply of iPhone 5 during the scheduled launching period on September 12 until product availability on September 21. The volume of the shipment for iPhone 5 is expected to increase during the fourth quarter this year.

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The research firm cited the production of iPad Mini behind, as compared with the speed of the iPhone 5 production. The delay adds credibility to media speculations that Apple Inc. (NASDAQ:AAPL) will launch the iPad Mini on a separate date. Some technology bloggers suggest that it would be beneficial for Apple to launch the iPad Mini and iPhone on a separate date, in order to focus the spotlight on each device.

Park believes Apple’s patent victory against Samsung Electronics Co., Ltd. (LON:BC94) will help increase its market share against its rivals in the mobile industry. The research firm also noted that Microsoft Corporation (NASDAQ:MSFT) benefited from the case and it will become a strong competitor.

The research firm projected Apple Inc. (NASDAQ:AAPL) will ship approximately 70 million iPhones from September through December this year. Mizuho Secutiries cited the need for the company to resolve the delay in supplies for in-cell display to accelerate its production for the devices. The research firm noted a strong demand for Apple products and reiterated its buy rating for Apple stock.

A separate report from Piper Jaffray noted that consumer demand for iPhone 5 is high, and  the preferred carrier for the product is Verizon Communications Inc. (NYSE:VZ). Baird Equity Research Technology also reported a similar observation.

The survey from Piper Jaffray indicated that a large number of consumers are now eligible to upgrade their smartphones from their telecommunications providers. Forty five (45%) percent of the consumers eligible for upgrade want to purchase an iPhone unit.

The survey from Baird Equity Research found that 77 percent of iPhone users are loyal to the product and want to purchase another iPhone unit.

On the other hand, T-Mobile is currently training its employees to improve their skills to sell against the iPhone 5. T-Mobile’s sales training is called Grab and Go Suite, and it is available in the company’s electronic learning system.

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Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
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